Nxu, Inc., a domestic technology company creating innovative EV charging and energy storage solutions for the infrastructure we need to power our electrified future, has executed definitive documents to finalize its strategic investment in Lynx Motors. This transaction both memorializes Nxu’s commitment to utilizing strategic partnerships to accelerate its mission to develop superior highway electrification and demonstrates continued execution of Nxu’s Nasdaq compliance plan. The financial impact of the transaction results in an increase in Nxu’s shareholder equity and helps to ensure that Nxu can achieve and maintain Nasdaq’s continued listing standards by and beyond Nasdaq’s extension deadline of April 7, 2024.
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“We’re excited to make this Lynx partnership official, teaming up with a company that shares our vision for an electrified future,” said Nxu Founder, Chairman and CEO Mark Hanchett. “Leveraging symbiotic industry knowledge and similarly ambitious goals, we look forward to joining forces with Lynx to supercharge our collective impact on the future of EVs and charging infrastructure. As a byproduct of the transaction, we’re able to continue executing on the compliance plan we presented to Nasdaq and further validate its decision to grant us an additional compliance period.”
Nxu’s investment is structured as a share exchange, whereby $3 million in Nxu shares will be exchanged for $3 million in Lynx shares. The value of Lynx shares become an asset on the Company’s balance sheet. Additionally, Nxu now holds one seat on Lynx’s Board of Directors, allowing the Company a hands-on opportunity to help develop Lynx and monitor the status of its investment. To expedite the electrification process, Lynx has issued an interest-free promissory note of $250,000 to Nxu in exchange for a $250,000 bridge loan. The Agreement is subject to registration rights and representations and warranties that survive the closing.
SOURCE: GlobeNewswire